Data localization is the storage of data on any device which is substantially existent in the confines of a particular nation where the data was brought about. There are varied reasons for the provisions of data localization which includes the national laws’ mandatory requirement of specific data to be physically banked on servers in the country or the necessity to adhere to data protection guidelines.

It is considered a must for data localization, especially, in terms of cross-border transfers wherein data storage in the country looks to be economical and better solution. It is also advantageous for enterprise customers of both data storage technologies and public opinion that prefer in-country data-storage solutions and schemes.

Alibaba has been the primary overseas business organization to candidly assert its aptness to welcome data localization regulations. However, the approbation is not the same as other high-profile firms like Amazon, American Express, Facebook, and Microsoft which have expressed unwillingness. Alibaba has capitalized in the country’s leading online payments such as Paytm and startups like Zomato as well as BigBasket in India.

Alibaba Cloud President Simon Hu said, “It is our principle. Alibaba respects data security and privacy…We have set up a data center. We are also building a data team that will help provide big data and AI services to India companies.”

Hu added that Alibaba is a “far cry” from other companies such as the US technology behemoths that strongly oppose India’s rigid data localization requirements. Alibaba claimed it has no problems with government measures regarding data processing. In fact, it is agreeable to accord with data localization principles of any country whether in India or Singapore.

Due to the expansive dissemination of internet in India, more advanced connectivity and the rise in the social media engagements have unwrapped the country as a rewarding market for overseas firms. However, security issues concerning data protection have persisted to be worrisome in pushing the government to constitute laws to safeguard the data of Indian people. This is also related to the case where millions of Facebook users’ data have been compromised that led to the country’s own investigation of Cambridge Analytica where the data has been allegedly shared by the giant social media.

Some people do appreciate data localization because of the apprehension that their private data could be hacked and used against them or sold to third-parties in the instance of foreign data storage solutions. Others disagree with data localization citing it as an impediment to the adaptability of the internet.